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Four skills you need to make it as a board director

Advice for aspiring board directors from the chair of Chartered Accountants Australia and New Zealand Murray Jack FCA.

In brief

As corporate governance has changed, so have the requirements (and recruitment processes) for board members.

One of the most desirable skills for board directors – and the most difficult to source - is technology experience.

Chartered Accountants ANZ is currently seeking expressions of interest from members for two board vacancies.

If becoming a board director is on your bucket list then be
aware that both the recruitment process, and the skillset required, have
undergone a sizeable shift.

“Boards have changed,” says Murray Jack FCA, who is chair of the Chartered Accountants ANZ
Board. “Largely, that’s in response to [changes to] business context; sometimes
in response to regulatory changes or changes in attitudes. But if you contrast
boards of today with boards of, say 20 years ago, there’s a lot more time spent
on dealing with compliance and regulatory matters.”

“Boards are getting better at
sourcing [members] than they used to be, so they tend to be running more
competitive recruitment processes now.”

“They'll use headhunting firms,
for example, to really hone in on particular skills and on individuals that fit. In the past it was much more about networks and
about who you knew. Although there are still elements of that, it’s far less
important these days.”

“Be
careful which boards you choose to be on. Look at the company that you'll be keeping as a director, and make
sure you’re comfortable with that [company].”
Murray
Jack FCA, chair of the Chartered Accountants ANZ board.

So what skills do board members
need nowadays? And how easy are they to source?

Jack believes one of the most
desirable skills – and the number one most difficult to source – is experience
in the technology space.

“Organisations – both at the governance level and the executive level –
are working it out as they go, so sourcing really high quality experience in
the [technology] space is a challenge,” he says.

“In light of digital disruption, a lot of organisations are grappling
with the impact that technology change is having on business models.

"There’s
not a lot of embedded experience in some of these areas, unlike other areas
where skills and experience exist."

RELATED: Governance for transformation

Why governance must enable, rather than constrain, innovation and
organisational change.

Advice
for aspiring board directors

Respect

“Be respectful of others and respect diversity of thought,” Jack
advises. “Everyone comes with experience and perspectives and insights and,
while they'll be different from your own, they're no less valuable because of
that.”

“Boards generally are much more diverse today than they were
20 years ago,” says Jack, “and that's by and large a great thing.”

In an era of improved board diversity, the need for respect
in the boardroom is greater than ever.

Listen
up

Professional empathy is vital if you’re going to be a member
of a high-functioning board, and listening is a key aspect of this. So too is
the need to prepare emotionally for a board role.

“A board is a team,” says Jack, “it's not just a collection
of individuals… So you need to have an environment where directors can disagree
and challenge each other.”

“Having significant executive experience at a very senior
level can also be important,” says Jack. “It's not essential, but it enables
you to really understand the dynamic between the board and executive at a
different level – it helps you understand the executive mind-set – and I think
it gives you a more detailed, nuanced understanding, which can make you a much
more effective board director.”

Consider where you can contribute

“Think
about where you want to make a contribution,” advises Jack. “Be thoughtful
about where you might have [the best] impact."

You should consider what it is
you have to offer, as well as what you hope to achieve by joining a board

“This will help you determine
the particular areas where you can add the most value,” Jack says.

Be careful of the company you keep

“Be careful which boards you choose to be on,” warns Jack. “Look at
the company that you'll be keeping as a director and make sure you’re
comfortable with that [company]."

“When you think about positioning yourself for boards, [some
of the best] places to start are not for profits or subsidiaries of entities
where you are an executive. This is where you can get a taste of board
experience.”